[Today's Guide]
○ PV industry sees growth, more installments to bring high performance
○ Special campaign plan on strengthening industries released, super-capacitor to see more supports
○ Tianshan Animal Husbandry Bio-engineering to acquire Hemu Sunshine, Konka Group proposes additional issuance
○ IRICO Display Devices to change controlling rights through private placement, Great Power Energy ＆Technology to develop lithium battery business
[SSN Focus]
○ PV industry sees growth, more installments to bring high performance
------
Xi'an Longi Silicon Materials Corp. (601012.SH) announced on April 12 evening that it expects its net profit to surge 2.45 to 2.65 times in the first quarter thanks to the booming demand for its high-efficient solar energy products, increasing capacity and scale as well as the growing photovoltaic components and silicon chip businesses. Risen Energy Co., Ltd. (300118.SZ) also forecasted that it turned losses into profits in the first quarter with a net profit of 345 to 355 million yuan thanks to the non-business income from the surging sales of PV products.
Comment: SSN reported that according to relevant policies, power stations filed in 2015 can still enjoy the previous in-grid power price if they join the grid by June 30, 2016. It is expected that power stations completed registration will be installed by the end of June. It will bring active effects on relevant companies in the PV industrial chain. Among listed companies, Changzhou Almaden Co., Ltd. (002623.SZ) is principally engaged in PV glass. Institutes are rosy that the company will continue to benefit from the booming industry. Sungrow Power Supply Co., Ltd. (300274.SZ) expects an increase of 70 to 100 percent in the first quarterly report as its PV power station system integration business has recognized revenue based on the progress of the work completed.
[SSN Selection]
○ Chinese Premier Li Keqiang presided over a symposium to study relevant issues in full implementation of replacing business tax with value-added tax on April 11.
○ QQ, Xiaomi and other Internet giants reinitiated online lottery sales. Users can buy lotteries through the QQ lottery app.
○ The road test of China's first long-distance driverless car started on April 12. Chongqing Changan Automobile Company Limited (000625.SZ) indicated that it will strive to achieve commercial use in 2018.
○ LeSports, China's leading Internet-based sports company, announced the completion of round B financing with 8 billion yuan on April 12. The company is valued at 21.5 billion yuan.
○ 4.9 percent shares of SDIC Xinji Energy Co., Ltd. (601918.SH) will be transferred from the State Development ＆ Investment Corporation (SDIC), its substantial shareholder, to China COSCO Shipping Corporation Limited for free to advance strategic cooperation among central enterprises.
TOP
[Industry Information]
○ Special campaign plan on strengthening industries in 2016 released, super-capacitor to see more supports
------
The Ministry of Industry and Information Technology (MIIT) released the plan on special campaign on strengthening industries in 2016 recently, which requires making breakthroughs in about 40 core fundamental components, key basic materials and advanced fundamental workmanship and well as improving the capacity in public fundamental services platforms for about 10 industrial technologies. In terms of the core fundamental components, the plan give priorities to supporting super-capacitor compared with that of 2015.
Comment: Institutes believe that super-capacitor is characterized by high power and frequency and is supplementary to lithium battery. They can jointly promote the development of new energy vehicles. The technologies on integrating super-capacitor and lithium battery will dominate the market with a huge market potential. In terms of listed companies, the production line for the lithium battery products of Nantong Jianghai Capacitor Co., Ltd. (002484.SZ) has been completed. Shenzhen Capchem Technology Co., Ltd. (300037.SZ) indicated that it is a supplier of Maxwell, a U.S. super-capacitor manufacturer.
○ Beauty analyst joins live broadcasting platform, instant online economy to boost new types of consumer businesses
------
Liao Lei, an analyst from Founder Securities Co., Ltd. (601901.SH) known for a roadshow video, joined a video live broadcasting platform on April 12 afternoon. Liao introduced block chains and made interaction with audience. As at the press time, 60,000 audience watched the video online.
Comment: Liao's popularity has no direct relation with her report. Her appearance and dressing played key roles in the broadcasting. With the rise of we media and the new generation, instant online economy with individuation became another orientation of Internet-based economy. After Papi Jiang obtained a financing of 12 million yuan, institutes are paying increasingly attention to the cashability brought about by instant online celebrities. Among A-share companies, Nanji E-commerce Co., Ltd. (002127.SZ) has initiated cooperation plans with instant online celebrities to build star department stores. The chairman of Alpha Group (002292.SZ) invested in We-Star Technology operated by the IP rights of stars. Songcheng Performance Development Co., Ltd. (300144.SZ) also develops Internet-based entertainment through the acquisition of 6.cn.
TOP
[Announcement Interpretation]
○ Tianshan Animal Husbandry Bio-engineering to acquire Hemu Sunshine to develop animal husbandry
------
Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (300313.SZ) proposes to acquire 65 percent equities of Hemu Sunshine with 273 million yuan by issuing shares through private placement and in cash. It also plans to raise a supporting fund of 273 million yuan. The shares issued for acquiring the asset are priced at 14.5 yuan per share. Hemu Sunshine is principally engaged in the plantation and sales of agricultural plants. Tianshan Animal Husbandry Bio-engineering will transform and upgrade its agriculture and animal husbandry after the acquisition. Based on the commitment on performance, the net profit after extraordinary items of Hemu Sunshine will reach 30 million yuan, 40 million and 50 million yuan in 2016 to 2018, respectively.
○ Konka Group to raise fund for expansion of smart TV
------
Konka Group Co., Ltd. (000016.SZ) proposes to issue 637 million shares to its controlling shareholder OCT Group, Nanjing Chuangyi, Whaley Technology, Beijing Yunnuo, Beijing Yunshiji and Ningbo CTC Information Technology Development Co., Ltd at 4.71 yuan per share through private placement to raise 3 billion yuan, which will all be used for smart TV R＆D and operational platform construction project, brand and channel construction project, loan repayment and supplement of working capital.
TOP
○ IRICO Display Devices to revise scheme for private placement, Xianyang SASAC likely to take control right
------
IRICO Display Devices Co., Ltd. (600707.SH) will make significant adjustment to its private placement scheme, in which the proposed fundraising will be raised to 23 billion yuan from planned 7 billion yuan. After additional issuance, controlling rights of the company will change. Xianyang Financial Holding Company Limited will hold 26.82 percent shareholding of the company and become the controlling shareholder. Xian Yang SASAC will become the actual controller of the company.
According to the revised scheme, IRICO Display Devices proposes to issue 2.5 billion shares at no less than 6.74 yuan a share to raise 23 billion yuan, which is intended to be used to increase capital in Xianyang Photoelectric Technology for the construction of 8.6 generation TFT-LCD project, increase capital IRICO LCD for the construction of 8.5 generation LCD substrate glass production line project and supplement working capital.
○ Great Power Energy ＆Technology to raise fund for lithium battery
------
Guangzhou Great Power Energy ＆Technology Co., Ltd. (300438.SZ) proposes to issue additional 13.8 million shares through private placement to raise 966.8 million yuan, which will be used for the construction of new energy lithium-ion power battery with annual capacity of 471 million Ah and supplement working capital. The company reported 45 percent growth in its annual report and proposes 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend.
○ Beixin Road ＆ Bridge Group obtains two large engineering orders in succession
------
Fujian Shunshao Expressway Development Co., Ltd., a subsidiary of Xinjiang Beixin Road ＆ Bridge Group Co., Ltd. (0023.7.SZ), has obtained the construction order for construction and installation project and equipment procurement, installation and engineering maintenance order of the Shunchang-Shaowu Expressway project in Nanping City, Fujian Province. The contract sum of the project is about 4 billion yuan, 26 percent of its 2015 revenue. Meanwhile, the company announced that it had won the bidding for a 114 km road project along Taoqingsonggrad and Wuliyasitai, with a contract sum of 42.2 million U.S. dollars.
○ BYD acquires RMB1.8 billion yuan pure electric city bus procurement project
------
BYD Auto Co., Ltd., a subsidiary of BYD Company Limited (002594.SZ), has participated in the bidding of "renewal solution project for 3,024 pure electric city buses in 2016 of Shenzhen East Public Transportation Co., Ltd.", and was selected as the largest provider, with a contract sum around 1.81 billion yuan.
[Financial Reports Express]
○ Multiple companies expect substantial growth in Q1
------
Chongqing Taiji Industry (Group) Co., Ltd. (600129.SH) expects 4,294 percent growth in Q1 report, primarily due to its subsidiary Chongqing Tong Jun Ge Co., Ltd obtained earnings from reorganization. Anhui Ankai Automobile Co., Ltd. (000868.SZ) expects 140-170 percent growth in Q1 report, primarily due to increase of sales of new energy vehicles. Gansu Gangtai Holding(Group) Co., Ltd. (600687.SH) expects 83-124 percent growth in Q1 report, primarily due to the combination of balance sheets of three acquired companies. Tianjin Tianbao Infrastructure Co., Ltd. (000965.SZ) expects 156-173 percent growth in Q1 report, primarily due to the recognition of revenue from real estate project.
○ Centre Testing International Group proposes high share conversion and dividend
------
Centre Testing International Group Co., Ltd. (300012.SZ) reported 24 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend.
[Trading Trends]
○ Jingui Silver Industry bought by three institutions
------
Chenzhou City Jingui Silver Industry Co., Ltd. (002716.SZ) on April 12 was bought by three institutions with a total of 159 million yuan, accounting for 23.69 percent of intraday trading turnover.
Comment: Jingui Silver Industry is primarily engaged in the smelt and processing of silver with an annual production capacity of over 600 tons. Analysts believe that silver smelt produce serious pollution though, the company invests big in technology upgrading and environment protection, and sets an example in the industry. In the context of overlapping of risk aversion sentiment and inflation expectation, gold and silver will see a rebound timeframe. The rebound flexibility of silver is even stronger than that of gold. In addition, as the company's three fundraising projects will be put into operation, it is expected that the company will embrace a period of performance growth.
TOP
○ PV industry sees growth, more installments to bring high performance
○ Special campaign plan on strengthening industries released, super-capacitor to see more supports
○ Tianshan Animal Husbandry Bio-engineering to acquire Hemu Sunshine, Konka Group proposes additional issuance
○ IRICO Display Devices to change controlling rights through private placement, Great Power Energy ＆Technology to develop lithium battery business
[SSN Focus]
○ PV industry sees growth, more installments to bring high performance
------
Xi'an Longi Silicon Materials Corp. (601012.SH) announced on April 12 evening that it expects its net profit to surge 2.45 to 2.65 times in the first quarter thanks to the booming demand for its high-efficient solar energy products, increasing capacity and scale as well as the growing photovoltaic components and silicon chip businesses. Risen Energy Co., Ltd. (300118.SZ) also forecasted that it turned losses into profits in the first quarter with a net profit of 345 to 355 million yuan thanks to the non-business income from the surging sales of PV products.
Comment: SSN reported that according to relevant policies, power stations filed in 2015 can still enjoy the previous in-grid power price if they join the grid by June 30, 2016. It is expected that power stations completed registration will be installed by the end of June. It will bring active effects on relevant companies in the PV industrial chain. Among listed companies, Changzhou Almaden Co., Ltd. (002623.SZ) is principally engaged in PV glass. Institutes are rosy that the company will continue to benefit from the booming industry. Sungrow Power Supply Co., Ltd. (300274.SZ) expects an increase of 70 to 100 percent in the first quarterly report as its PV power station system integration business has recognized revenue based on the progress of the work completed.
[SSN Selection]
○ Chinese Premier Li Keqiang presided over a symposium to study relevant issues in full implementation of replacing business tax with value-added tax on April 11.
○ QQ, Xiaomi and other Internet giants reinitiated online lottery sales. Users can buy lotteries through the QQ lottery app.
○ The road test of China's first long-distance driverless car started on April 12. Chongqing Changan Automobile Company Limited (000625.SZ) indicated that it will strive to achieve commercial use in 2018.
○ LeSports, China's leading Internet-based sports company, announced the completion of round B financing with 8 billion yuan on April 12. The company is valued at 21.5 billion yuan.
○ 4.9 percent shares of SDIC Xinji Energy Co., Ltd. (601918.SH) will be transferred from the State Development ＆ Investment Corporation (SDIC), its substantial shareholder, to China COSCO Shipping Corporation Limited for free to advance strategic cooperation among central enterprises.
TOP
[Industry Information]
○ Special campaign plan on strengthening industries in 2016 released, super-capacitor to see more supports
------
The Ministry of Industry and Information Technology (MIIT) released the plan on special campaign on strengthening industries in 2016 recently, which requires making breakthroughs in about 40 core fundamental components, key basic materials and advanced fundamental workmanship and well as improving the capacity in public fundamental services platforms for about 10 industrial technologies. In terms of the core fundamental components, the plan give priorities to supporting super-capacitor compared with that of 2015.
Comment: Institutes believe that super-capacitor is characterized by high power and frequency and is supplementary to lithium battery. They can jointly promote the development of new energy vehicles. The technologies on integrating super-capacitor and lithium battery will dominate the market with a huge market potential. In terms of listed companies, the production line for the lithium battery products of Nantong Jianghai Capacitor Co., Ltd. (002484.SZ) has been completed. Shenzhen Capchem Technology Co., Ltd. (300037.SZ) indicated that it is a supplier of Maxwell, a U.S. super-capacitor manufacturer.
○ Beauty analyst joins live broadcasting platform, instant online economy to boost new types of consumer businesses
------
Liao Lei, an analyst from Founder Securities Co., Ltd. (601901.SH) known for a roadshow video, joined a video live broadcasting platform on April 12 afternoon. Liao introduced block chains and made interaction with audience. As at the press time, 60,000 audience watched the video online.
Comment: Liao's popularity has no direct relation with her report. Her appearance and dressing played key roles in the broadcasting. With the rise of we media and the new generation, instant online economy with individuation became another orientation of Internet-based economy. After Papi Jiang obtained a financing of 12 million yuan, institutes are paying increasingly attention to the cashability brought about by instant online celebrities. Among A-share companies, Nanji E-commerce Co., Ltd. (002127.SZ) has initiated cooperation plans with instant online celebrities to build star department stores. The chairman of Alpha Group (002292.SZ) invested in We-Star Technology operated by the IP rights of stars. Songcheng Performance Development Co., Ltd. (300144.SZ) also develops Internet-based entertainment through the acquisition of 6.cn.
TOP
[Announcement Interpretation]
○ Tianshan Animal Husbandry Bio-engineering to acquire Hemu Sunshine to develop animal husbandry
------
Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (300313.SZ) proposes to acquire 65 percent equities of Hemu Sunshine with 273 million yuan by issuing shares through private placement and in cash. It also plans to raise a supporting fund of 273 million yuan. The shares issued for acquiring the asset are priced at 14.5 yuan per share. Hemu Sunshine is principally engaged in the plantation and sales of agricultural plants. Tianshan Animal Husbandry Bio-engineering will transform and upgrade its agriculture and animal husbandry after the acquisition. Based on the commitment on performance, the net profit after extraordinary items of Hemu Sunshine will reach 30 million yuan, 40 million and 50 million yuan in 2016 to 2018, respectively.
○ Konka Group to raise fund for expansion of smart TV
------
Konka Group Co., Ltd. (000016.SZ) proposes to issue 637 million shares to its controlling shareholder OCT Group, Nanjing Chuangyi, Whaley Technology, Beijing Yunnuo, Beijing Yunshiji and Ningbo CTC Information Technology Development Co., Ltd at 4.71 yuan per share through private placement to raise 3 billion yuan, which will all be used for smart TV R＆D and operational platform construction project, brand and channel construction project, loan repayment and supplement of working capital.
TOP
○ IRICO Display Devices to revise scheme for private placement, Xianyang SASAC likely to take control right
------
IRICO Display Devices Co., Ltd. (600707.SH) will make significant adjustment to its private placement scheme, in which the proposed fundraising will be raised to 23 billion yuan from planned 7 billion yuan. After additional issuance, controlling rights of the company will change. Xianyang Financial Holding Company Limited will hold 26.82 percent shareholding of the company and become the controlling shareholder. Xian Yang SASAC will become the actual controller of the company.
According to the revised scheme, IRICO Display Devices proposes to issue 2.5 billion shares at no less than 6.74 yuan a share to raise 23 billion yuan, which is intended to be used to increase capital in Xianyang Photoelectric Technology for the construction of 8.6 generation TFT-LCD project, increase capital IRICO LCD for the construction of 8.5 generation LCD substrate glass production line project and supplement working capital.
○ Great Power Energy ＆Technology to raise fund for lithium battery
------
Guangzhou Great Power Energy ＆Technology Co., Ltd. (300438.SZ) proposes to issue additional 13.8 million shares through private placement to raise 966.8 million yuan, which will be used for the construction of new energy lithium-ion power battery with annual capacity of 471 million Ah and supplement working capital. The company reported 45 percent growth in its annual report and proposes 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend.
○ Beixin Road ＆ Bridge Group obtains two large engineering orders in succession
------
Fujian Shunshao Expressway Development Co., Ltd., a subsidiary of Xinjiang Beixin Road ＆ Bridge Group Co., Ltd. (0023.7.SZ), has obtained the construction order for construction and installation project and equipment procurement, installation and engineering maintenance order of the Shunchang-Shaowu Expressway project in Nanping City, Fujian Province. The contract sum of the project is about 4 billion yuan, 26 percent of its 2015 revenue. Meanwhile, the company announced that it had won the bidding for a 114 km road project along Taoqingsonggrad and Wuliyasitai, with a contract sum of 42.2 million U.S. dollars.
○ BYD acquires RMB1.8 billion yuan pure electric city bus procurement project
------
BYD Auto Co., Ltd., a subsidiary of BYD Company Limited (002594.SZ), has participated in the bidding of "renewal solution project for 3,024 pure electric city buses in 2016 of Shenzhen East Public Transportation Co., Ltd.", and was selected as the largest provider, with a contract sum around 1.81 billion yuan.
[Financial Reports Express]
○ Multiple companies expect substantial growth in Q1
------
Chongqing Taiji Industry (Group) Co., Ltd. (600129.SH) expects 4,294 percent growth in Q1 report, primarily due to its subsidiary Chongqing Tong Jun Ge Co., Ltd obtained earnings from reorganization. Anhui Ankai Automobile Co., Ltd. (000868.SZ) expects 140-170 percent growth in Q1 report, primarily due to increase of sales of new energy vehicles. Gansu Gangtai Holding(Group) Co., Ltd. (600687.SH) expects 83-124 percent growth in Q1 report, primarily due to the combination of balance sheets of three acquired companies. Tianjin Tianbao Infrastructure Co., Ltd. (000965.SZ) expects 156-173 percent growth in Q1 report, primarily due to the recognition of revenue from real estate project.
○ Centre Testing International Group proposes high share conversion and dividend
------
Centre Testing International Group Co., Ltd. (300012.SZ) reported 24 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend.
[Trading Trends]
○ Jingui Silver Industry bought by three institutions
------
Chenzhou City Jingui Silver Industry Co., Ltd. (002716.SZ) on April 12 was bought by three institutions with a total of 159 million yuan, accounting for 23.69 percent of intraday trading turnover.
Comment: Jingui Silver Industry is primarily engaged in the smelt and processing of silver with an annual production capacity of over 600 tons. Analysts believe that silver smelt produce serious pollution though, the company invests big in technology upgrading and environment protection, and sets an example in the industry. In the context of overlapping of risk aversion sentiment and inflation expectation, gold and silver will see a rebound timeframe. The rebound flexibility of silver is even stronger than that of gold. In addition, as the company's three fundraising projects will be put into operation, it is expected that the company will embrace a period of performance growth.
TOP
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